Write a Report

the message of the chairman to the shareholders for a listed company. we want the writing style similar to below: CHAIRMAN’S MESSAGE THE ECONOMIC PICTURE Gross Domestic Product (GDP) grew at a slower pace, from 7.2% in 2013 to 6.1% in 2014. The slowdown was due to the services’ sector and government spending. Government expenditure decelerated and public construction fell, reflecting cautious spending by its agencies over alleged misuse of funds. Areas of concern for the year also included the ever present need to tackle poverty, governance, peace and order, disaster preparedness and the need to attract more direct foreign capital investment. During the year, the Philippines posted a balance of payment deficit of US$2.88 billion, caused by investment money outflows in anticipation of the ending of the U.S. Federal Reserve’s easy monetary policy. On a positive note, the 2014 inflation rate stood at 4.1% reflecting the downward trend of food and oil prices. The stable to depreciating peso against the US dollar during the last few months of 2014 helped grow exports. 2014 FINANCIAL PERFORMANCE Your Company generated a consolidated net income of E2.04 billion, 50% higher than last year’s net profit of E1.36 billion. This was largely the result of higher consolidated revenues of E4.26 billion, representing a 21% increase from the E3.53 billion of 2013. Anscor’s financial assets saw gains from the sale of marketable securities amounting to E1.67 billion, 52% better than last year’s E1.10 billion. The sale of these securities occurred mostly in the 4th quarter of the year to fund the purchase of 60% of Phelps Dodge International Philippines, Inc. (PDIPI). Our core investments in traded shares—which include Aboitiz Power Corporation, Aboitiz Equity Ventures, International Container Terminal Services, Inc., iPeople and other marketable equity holdings, contributed dividend income of E260.9 million, higher than the E238.0 million of 2013. Interest income of E96.4 million was slightly better than the previous year. The decline in the market value of investments carried at fair value through profit and loss was E9.5 million. This amount recovered from a loss of E102.8 million in 2013 with the improved market prices of equity funds and bonds managed by a third party. With the slight loss in value of the peso against the US dollar and the euro in 2014, the peso value of _______'s foreign currency denominated investments improved. This gain was offset by the Group’s dollar-denominated loans, resulting in a consolidated foreign exchange loss of E10.0 million against a gain of E32.7 million in 2013. _________'s operating investments contributed E147.1 million in equity earnings, 36% below last year’s E228.9 million. The favorable performances of PDIPI and Cirrus Medical Staffing, Inc. were offset by a share in the losses of AG&P and Seven Seas Resorts and Leisure, Inc. ___________'s financial assets continued to perform well during the year. On November 20, 2014, your Company declared cash dividends of E0.25 per share to stockholders of record as of December 5, 2014, which were paid on January 7, 2015. On December 22, 2014, your Company acquired, for E3.0 billion, General Cable’s 60% stake in PDIPI, increasing _________'s ownership to 100%. As a result of this acquisition, existing accounting standards required us to revalue_____'s original 40% holding in PDIPI, which led to a step up gain of E700 million. We took this opportunity to provide valuation allowances to some of our investments for conservatism. As of December 31, 2014, your Company’s book value per share stood at E11.94 versus E10.82 in 2013. GROUP OPERATIONS PHELPS DODGE INTERNATIONAL PHILIPPINES, INC. (PDIPI) Sales and net income hit all-time highs in another good year for PDIPI. Revenues rose across all business sectors: commercial, industrial, manufacturing and energy with PDIPI’s net sales revenue reaching E6.6 billion, a 14% increase over 2013 levels. Net income grew 23% to E535.5 million. PDIPI will continue to strengthen servicing customer requirements with its current mix of products, business solutions and services. New product lines continue to drive the company’s growth. Access to high-quality high-voltage lines, and a reputation for reliable engineering services, enabled PDIPI to secure several large and important orders. The company’s ability to offer a variety of standard and new product lines and new business solutions has made Phelps Dodge become a leader in the country’s wire and-cable industry. Supported by a network of capable dealers, Phelps Dodge expanded its customer base. Continuous market research and sharing of information made the partnership between PDIPI and its dealers highly effective. The improved net income, despite lower average copper prices during the year, was the result of continual operating improvements and productivity gains. Moving forward, PDIPI will strengthen its delivery of customer requirements with its current mix of products, business solutions and services. Its continuing access to leading technology, new product offerings and research through a new technical agreement with General Cable should strengthen the Company’s ability to carry out its growth plans. SEVEN SEAS RESORTS AND LEISURE INC. (Owner of Amanpulo Resort) With the memory of the catastrophic typhoon Yolanda receding, Amanpulo is starting to attract foreign tourists again. The Resort reported an 8% increase in revenue, from E445.3 million in 2013 to E480.1 million in 2014. Occupancy rates reached 34.4% with average room rates rising from US$1,057 to US$1,168. Room revenue also benefited from the depreciation of the peso by an average of 10.5%. The combined share of villa revenue and fees from villa operations increased 19.9% due to better villa occupancy and villa rates. The second batch of the Resort’s renovated casitas was completed in the last semester of 2014. The Resort was closed in the month of June for major renovation and replacement of the roofs of all casitas, the beach club and the main clubhouse. Gross operating profit amounted to E57.0 million, at par with that of last year, tempered by higher depreciation and management fees. Last year’s net loss of E16.4 million increased to E32.3 million in 2014. Management fees to Aman rose to E36.5 million in 2014 from E19.6 million in 2013. Seven Seas completed paving the runway and the construction of seawall on the eastern side of the island; plugging the east reef hole; and expanding the laundry and housekeeping stations. The company also extended and completely renovated the kitchen of the beach club. We are pleased with the informal and formal feedback from both repeat and first time guests on the casita renovation and the redesigned interiors. During the year, the builders turned over to Amanpulo, two of the five villas under construction for private owners. Completion of the remaining three villas will be in the first quarter of 2015. The two remaining available villas were sold with a completion date by middle of 2016. This will bring our total room inventory to 103, comprised of the original 40 casitas and 63 rooms of the 16 villas. Amanpulo’s capital investments continue to focus on improving the guest experience and efficiencies, lowering cost and shifting to more environmentally-friendly technologies. The Resort’s electric golf carts run on solar power. Studies on reef protection and regeneration are among on-going environmental initiatives. Amanpulo received several tourism awards in 2014, among them that of being the ‘Leading Resort in the Philippines’ from the World Travel Awards. The Resort was also nominated for the “World’s Leading Private Island Resort” and “Asia’s Leading Villa Resort”. CIRRUS MEDICAL STAFFING, INC. Demand for temporary health-care staff in the United States strengthened throughout 2014, driven by an increase in hospital admissions as the Affordable Health Act begun to take effect. The increase in patient volumes helped drive strong demand in most areas of healthcare staffing. For 2014, the company reported E1.2 billion in consolidated revenue, a 6% increase over that of 2013. Sales growth was underpinned by growth in Travel Nursing, Cirrus’ largest segment, and the International and Direct-Hire divisions. Regulatory changes in Medicare reimbursement, and the continued consolidation of rehabilitation facilities and agencies, resulted in the continued decline in Travel Therapy. Consolidated operating income was E51.9 million, compared to an operating loss of E13.6 million in 2013. Improved profitability was driven by a 10% increase in gross margin and a reduction in overhead expenses. 2015 has started well and Cirrus expects that the increased demand and the productivity improvement that have been in place will continue to bear fruit. AG&P INTERNATIONAL HOLDINGS LTD. AG&P revenues grew by 75% to US$214.34 million in 2014, as the Bechtel Gladstone LNG project was completed and the Ichthys LNG project gathered momentum. Despite higher revenues, AG&P’s 2014 gross profit of US$46.4 million was 3% below that of 2013 and operating expenses were higher by 18%, as the company added staff to prepare for future growth. In addition, AG&P terminated the incubation of Energy City, a domestic LNG project, which resulted in the write down of US$7.0 million. The company also secured modularization work for the Yamal LNG project, which commenced in late 2014. The focus for 2015 will be on progressing the Ichthys project to completion, finishing the first modules for Yamal LNG Project, achieving greater operational efficiencies and building a healthy sales pipeline. ENDERUN COLLEGES, INC. For its fiscal year June 1, 2013 to May 31, 2014 Enderun Colleges posted a consolidated net income of E64.2 million on revenues of E456.6 million. The company also tracks its financial performance by reporting its adjusted EBITDA (operating income plus depreciation expenses and non-cash rental accruals). Enderun’s adjusted EBITDA for fiscal year 2013-2014 was E120.4 million, 26% higher than that of the previous year. As of May 31, 2014, the company’s cash position stood at E91.8 million and the College is debtfree. During the year, it paid cash dividends of E59.94 million of which E12.45 million accrued to Anscor. Enderun’s student population has grown to over 1,100 full-time college and certificate students, spread almost evenly across the school’s three main degree offerings in Hospitality Management, Business Administration and Entrepreneurship. There is a steady growth in Enderun’s continuing education unit, Enderun Extension. Its revenues rose 10.9% year-on-year to E64.5 million. The school’s Food & Beverage unit has also grown significantly: its revenues rising 41.5% to E77.4 million from E54.7 million in 2013. Enderun continues to bolster its reputation in the market for higher education, particularly in hospitality and business management. Enderun has established itself as the top-quality institution in hotel administration and the culinary arts, as evidenced by its expanding student population and its growing base of industry partners. The College’s career-focus business program and hands-on entrepreneurship program are attracting top faculty members, and a growing population of highly-motivated students. The College recently established a hotel management and consultancy arm, Enderun Hospitality Management (EHM). Through EHM, the company now manages five hotel properties and provides consultancy services to two other hotels in the Philippines. PROPLE LIMITED Consolidated full-year revenues for Prople Limited grew three times from E168.0 million in 2013 to E538.0 million in 2014. This was a direct result of Prople’s acquisition on November 26, 2013 of 100% of the non-audit business of US-based Kellogg and Andelson Accountancy Corporation (K&A). Founded in 1939, K&A is an established US accounting firm, providing tax, general accounting and consulting services to thousands of smallto-medium-sized companies in California and the Midwest. Prople’s profit performance improved with consolidated operational EBITDA reaching E64.8 million and net income of E15.9 million, excluding the one-time closing costs associated with the acquisition. Following its acquisition of K&A, Prople now employs 373 people serving over 5,500 clients from operations located in six cities worldwide. Moving forward, its K&A partnership gives Prople heavier weight, reach and capability, and positions it to capture market opportunities in the high-growth business segments of finance and accounting, human resources and information services globally. Cross-selling and the shift of some of the US-based work to Manila assures Prople of continued growth in 2015. KSA REALTY CORPORATION In 2012 and 2013, KSA Realty Corporation experienced strong performances in its leasing operations with rising occupancy rates and rental yields. While Management remained positive that the building would be able to maintain its momentum, 2014 started with quite a challenge. The terms of almost a quarter of the building’s leasable spaces were due to expire and competing office supply continued to rise in the Makati Central Business District and Fort Global City. KSA successfully renewed more than 90% of expiring leases and most of its remaining vacant spaces were taken on by new and existing tenants. The building’s occupancy rate remained at 98% and average rental yield increased by 8% to E921 per sq.m. at the end of 2014. To confirm the confidence that the tenants have shown by renewing their tenancy and to remain current with the competition, KSA took on an upgrading project with a budget of E400.0 million. This endeavor will update the common areas of this 15-year old building, upgrade its facilities and maintain its reputation as one of the premiere office buildings in the metropolis. 2014 was a good year for KSA with a gross rental income reaching over E900.0 million. Net income rose to a high of E690.0 million. These results permitted the declaration of cash dividends of E800.0 million, of which E91.4 million accrued to __________. Predictive Edge Technologies, LLC Predictive Edge Technologies is an early stage technology company. Currently, the company has eight patents pending or awarded. Its subsidiary, Behavior Matrix LLC, is a world class emotional and behaviour analytics platform that gives companies and organizations a unique way to understand their respective audiences. Through the use of advanced mathematics, analytical algorithms and big data harvesting, Behaviour Matrix provides clients with insights to guide their business intelligence and marketing strategies. In 2014, Behavior Matrix achieved a year-overyear growth in sales of over 200% with sales of $1,953,705 up from $641,500 in the prior year. CORPORATE SOCIAL RESPONSIBILITY The Foundation continues to undertake community-development programs in the isolated and disadvantaged areas of Northeastern Palawan, also offers various forms of aid and comfort to cancer patients and victims of natural disasters, sustained by its many partners and donors. Small Island Sustainable Development Program The Foundation’s Coastal Resource Management Project supports 12 marine sanctuaries. The Foundation’s yearly Health Caravan provided 2,533 medical services to 2,125 patients, and supported 385 malnourished children. Its community-based Tuberculosis Directly Observed Treatment Short Course project began full operation in 2014. These health initiatives were supported by the SHARE Foundation of Portugal, a long time donor. A birthing clinic in Cocoro Island, Municipality of Magsaysay, was built in partnership with the Zuellig Family Foundation. ASF built ten pre-school classrooms for public elementary schools, in addition to six rehabilitated Day Care Centers. It is supervising three preschool centers on islands without public schools this school term. An ASF full academic scholar from Manamoc Island graduated in April 2014 with a degree in Accountancy. Fourteen technical-vocational scholars completed the six-month course and started their on-the-job training. A two-classroom school building was constructed in Concepcion to replace school buildings damaged by Typhoon Yolanda. In partnership with Solar Energy Foundation, ASF received 250 units of solar lamps and four units of solar suitcases for health stations and birthing clinics. ASF’s livelihood programs helped victims of Typhoon Yolanda set up 69 micro-enterprises on Quiniluban Island. A partnership with Amanpulo by the Manamoc Livelihood Association generated E4.5 million in the sale of local products, 11% better than last year’s performance, benefitting more than 300 families. Cancer Care Program In ASF’s specialized oncology-nursing course, 22 registered and full-time duty nurses sent by six hospitals in the Western Visayas are officially enrolled in the course’s pilot implementation. In partnership with the Philippine General Hospital Cancer Institute, the Foundation continues to provide maintenance chemotherapy medicines for 45 indigent breast-cancer patients. Disaster Relief and Rehabilitation Activities For Typhoon Yolanda relief and rehabilitation efforts, ASF received nearly E10.0 million in cash and in-kind donations. More than 3,090 relief packs were distributed to Barangays Algeciras, Concepcion and Manamoc. ASF provided more than 200 GI sheets donated by its trustee to residents with partially-damaged houses and school buildings in these barangays. In addition, the Foundation built 300 core shelter units for indigent families whose houses were totally-damaged. All units were completed and turned over in November 2014. OUTLOOK AND STRATEGY In 2014, taking our most promising opportunities, we raised our stake in Phelps Dodge International Philippines, Inc. Through Prople, our business-solutions provider, we also acquired K&A, a US-based accounting firm, to help expand our BPO-services business. Growing our businesses is vital to Anscor’s long-term success. We keep a tight watch on our existing portfolio of businesses and new opportunities as they emerge. In 2014, we were able to increase revenue, manage expenses, and improve business margins and profitability of most of our operating units. Our country’s most valuable asset is its well educated and industrious people. Filipinos and the Filipino Family values are themselves the strongest drivers of the economy. Given that the majority of Anscor’s businesses compete in technical knowledge-process outsourcing and service-oriented industries, we believe that, we are well placed to take advantage of emerging trends. The improved outlook for both the Philippine and the global economy are encouraging signs. It is in this environment that your Company reflects on 2014 with thanks and looks forward to 2015 with the fundamentals in place to be able to grow as a holding company, and for each company in the Group to expand. ACKNOWLEDGMENT On behalf of your Board of Directors, our most sincere appreciation to you, our shareholders, for your continued support and to our customers for their patronage. Our achievements would not have been possible without the dedication and loyal support of all our employees and partners. On behalf of the Board and myself, Thank You.